Inflation Takes Another Victim as This All-Day Breakfast Giant is Set to Close 150 Locations...

Grab your tissues, friends because Denny's, the diner chain that’s been serving up pancakes and late-night coffee refills since your grandparents were in diapers, is closing 150 locations. 

(Source: Business Insider) 

In short, this brutal wake-up call for the industry was announced on Friday as Denny’s plans to  shutter about 150 stores by the end of 2026. That’s roughly 10% of its total locations, and it’s all part of a strategic effort to boost annual unit volume sales. Translation: they’re trying to make more money, but with fewer pancakes being flipped.

(Source: Giphy) 

So why the sudden slim down? Well, if you haven’t noticed, times are still tough for some all over. Families—the bread and butter of Denny’s business—have been hit hard by inflation. And when buying a carton of eggs feels like taking out a mortgage, it’s no surprise that people are dining out less. According to analysts, chains like Denny’s, Red Lobster, and Applebee's are feeling the squeeze as families cut back on restaurant spending or trim their orders when they do venture out. 

(Source: AP) 

Of course, even with the grim news, there is still some hope as Denny’s CEO, Kelli Valade, says this is all part of a plan to make the brand "stronger." The company is targeting underperforming locations—aka the stores that are costing more to run than they’re bringing in. Many of these locations are old, too. Like, really old. Too old to remodel, apparently. So, rather than sink money into keeping the lights on, Denny’s is pulling the plug.

Oh, and in case this news wasn’t heavy enough, Denny’s is also considering slimming down its menu from 97 items to 46. A.k.a. Even more of a travesty than the friggin closings. 

(Source: Giphy) 

What’s more is that Dennys isn’t the only one going through the ringer here. The entire family dining sector is limping along like a diner waitress at the end of a double shift. Red Lobster recently closed over 100 locations, and Applebee’s has already shuttered dozens. Everywhere you look, restaurants that once thrived on the “bring the whole family” vibe are struggling to keep the doors open.

Simply put, operational costs are just too damn high, with the price of food and labor going through the roof. And then there’s the “takeout revolution.” More people are opting to order food in rather than go out, which doesn’t exactly bode well for places like Denny’s where the whole appeal is for a family to sit in a booth for an hour while pretending to like each other. 

So with that, what’s the game plan going forward? Well, they’re hoping that by closing these underperforming locations, they can bounce back and hit their goal of $2.2 million in annual unit volume sales. They’re also doubling down on their remaining locations, hoping that a leaner, meaner Denny’s will be enough to survive the brutal restaurant landscape.

Additionally, Denny’s might just abandon its 24/7 operation model. Since the pandemic, many locations haven’t returned to round-the-clock service (like Walmart, which absolutely pisses me off to no end, I might add), and unfortunately, it looks like that might be the new normal.

(Source: Giphy) 

The bottom line (literally) is that Denny’s is facing tough choices, and the writing’s on the wall. With shares down 50% over the last financial year and same-store sales on a five-quarter losing streak, something had to give. The 150 closures are expected to help the chain clean up its balance sheet, but it’s clear that the golden age of family dining is under serious threat.

So, the next time you’re craving a Moons Over My Hammy, you might want to check if your local Denny’s is still around. Because, like many things in life, nothing lasts forever—not even all-day breakfast - *sigh*. In the meantime, let’s all direct our Sunday prayers over to iHop and Waffle House… because they are all we have left friends. 

As always, stay safe and stay frosty this Sunday, friends! Until next time… 

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